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CVC Asks Banks Not to Report Frauds Below Rs. 1 Lakh
June 19, 2017
Public sector banks have been instructed by the Central Vigilance Commission (CVC) not to report frauds to local police unless they are above Rs. 1 lakh or they involve their staff. Currently, the banks are required to report frauds above Rs. 10,000 and below Rs. 1 lakh to the police.
The revision of the protocol for banking frauds resulted from a discussion between the Reserve Bank of Indian and CVC in light of the practical problems faced by the public sector banks. Under the new rule, frauds above Rs. 10,000 and below Rs. 1 lakh will be handled by the bank officials themselves.
